BOARD01526

• Board Meeting Date: 9/25/2000
• Description: Summary Minutes and Record of Decisions - Special Meeting - Via Phone 8/00
• Board Meetings - Doc Type: Memo

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STATE OF COLORADO

Colorado Water Conservation Board
Department of Natural Resources
1313 Sherman Street, Room 721
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
www.cwcb.state.co.us

Q

Bill Owens
Governor

Colorado Water Conservation Board Resolution
Regarding Amendment 21-Tax Cuts
Adopted July 24, 2000
Ratified August 28, 2000

Greg E, Walcher
Executive Director

Dan McAuliffe
Acting Director

WHEREAS the Colorado Water Conservation Board (CWCB) was created in 1937 to
aid in the protection and development of the waters of the state for the benefit of present
and future inhabitants;

WHEREAS the CWCB accomplishes this mission by financing water
proj ects and studies;

WHEREAS water projects are financed through loan contracts with
individuals, special districts, water conservation and conservancy districts,
and municipalities, hereafter water users;

WHEREAS to obtain funds from the CWCB, a water user must
demonstrate that they can repay a loan and have adequate collateral;

WHEREAS these loan contracts require the water user to obligate collateral and make
repayments;

WHEREAS much of the collateral and payments made to the CWCB result from tax
assessments;

WHEREAS the passage of Amendment 21 would require the water users making
payments to reduce their tax collection by $25 per tax bill per year;

WHEREAS water users have estimated that the passage of Amendment 21 could
result in the loss of a majority of the revenue they collect to repay loans;

WHEREAS the resulting loss of revenue could cause water users to default on loans;

WHEREAS the resulting default could jeopardize the solvency of the state
Construction Fund and the Severance Tax Trust Fund Perpetual Base Account from
which loans are made;

WHEREAS Amendment 21 could prevent money from being loaned in the future and
thereby seriously inhibit water users' ability to effectively and efficiently use Colorado
compact waters;

Minutes of August 28, 2000
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